TFI Resources ~ Blog

Flexibility – the recruiter’s key to unlocking more revenue, fresh talent, and happy clients

Featured Contributor: Tim Bell, President of People 2.O Recruiter Services (formerly TFI Resources)

 

As published to NPA Worldwide’s Blog at http://npaworldwide.com/blog/2017/04/18/flexibility-recruiters-key-to-unlocking-more-revenue/#.WPdoDWkrJhF

 

For sustaining success, independent recruiters must take advantage of the “candidate’s quest for flexibility” trend that is especially popular among the millennial generation (23-34 year-olds), currently the largest segment of the global workforce. Recruiters and employers alike are realizing that flexibility may be the key ingredient to meeting the competitive demand for talent, while also engaging this influential generation.

More and more companies are offering flexible work options, which allows employers to appeal to millennials while potentially reducing turnover and increasing productivity. Furthermore, retaining millennials is good for long-term business. A 2016 survey published by FlexJobs reveals that those millennials interested in work flexibility are highly educated and experienced workers; 74 percent of respondents have a college or graduate degree, and 20 percent are already manager level or higher.

 

Flexibility – Top in Job Prospect Considerations

It’s clear that ‘flexibility’ isn’t a fad and is swiftly becoming essential when weighing offers. In fact, the FlexJobs survey reveals that ‘work-life balance’ and ‘work flexibility’ are the most important factors for millennials when evaluating job prospects (84 percent and 82 percent, respectively). Compare those statistics to traditionally recognized job prospect considerations that rank lower in importance: salary (80%), health insurance (48%), and 401(k)/retirement benefits (36%).

 

According to a recent EY survey: “More than other generations, U.S. millennials were most likely to say they valued flexibility. And if they get it they said they are more likely to recommend the company as a place to work, be more engaged and work longer hours.”

 

It’s worth recognizing that flexibility appeals to other generations in the global workforce, too. The EY survey of 9,700 full-time employees in eight of the largest economies around the world notes that ‘flexibility’ ranked as a top feature wanted in a job, just behind competitive pay and benefits; respondents also cited lack of flexibility among the top reasons they’d quit.

 

Millennials – the Intersection of Flexibility and Contingent

If flexibility is the influence and millennials are the driving force, is the rise of a contingent workforce the result? Or maybe the contract and temp opportunities have just been waiting for the best-fit talent pool?

  • By 2020, more than 40 percent of the U.S. workforce will be comprised of contingent workers, according to a study conducted by Intuit.
  • “Over the next several decades, the impact millennials have on when, where, and how we all work will be felt in pretty much every organization and even in public policy measures,” notes the FlexJobs survey.
  • “Temporary staffing holds the major percentage share in the total recruitment and staffing market, and is projected to grow at a faster growth in the future owing to the growing preference for flexible working environment,” according to the Global Recruitment and Staffing Market (2016-2021) report.

 

More and more recruiters are recognizing that revenue opportunities are inevitable if they can appeal to millennials and serve clients with contingent workforce needs. Furthermore, the correlation of flexibility and contingent growth is not limited to millennials. According to American Staffing Association, about one in five of surveyed staffing employees (across generations) cite ‘scheduling flexibility’ as a key reason for choosing temporary and contract work. Individual assignments range from a few hours to several years; overall employment tenure averages just over three months.

 

This climate creates exciting opportunities for recruiters when adding contract and temp placements to their traditional direct hire placements. It’s actually a win-win-win:

  • Recruiters are better equipped to edge out the competition and increase revenue; plus, the flexibility inherent in temporary and contract placements make the positions attractive to millennials
  • Talent is acquired and satisfied with flexible options (and recruiters improve talent retention)
  • Client companies fill positions with scalability to meet the changing needs of business (and recruiters improve client satisfaction)

 

Get Ahead – Recurring Revenue Stream

Need further convincing that this opportunity must be pursued now? Consider these six reasons to ride this trend to propel your growth:

  1. Contract placements are easier to make because neither party is making a “permanent” commitment. Agreeing to contract assignment terms can be easier and much quicker for both parties. That flexibility gives you a big advantage! Wouldn’t it be wonderful to finally say “yes” to clients wanting your help filling temp and contract positions you would’ve had to turn down in the past?
  2. There’s a shortage of qualified personnel. Keep your good candidates busy! When workers are active on temporary assignments, they’ll be available when a direct hire opportunity arises.
  3. Beat the competition by attracting the best talent and accommodating their desire for flexibility on assignments.
  4. Recruiters focusing exclusively on direct hire placements can experience significant fluctuations in cash flow. Fees from contract placements are predictable, consistent, and stable, which allows recruiters to generate an additional source of income.
  5. Many client companies want the try-before-we-buy option. As this trend continues, all recruiters should be able to offer temp-to-perm placements.
  6. Due to the rise in contract labor needs, client companies are heavily relying on the staffing industry to manage the entire process. Your clients will look to you for comprehensive services.

 

For your business to thrive in the new marketplace amidst all the changes and impacts, you must overcome any perceived complexities in your mind associated with contingent and contract staffing. Don’t be discouraged if you haven’t done these placements before – look to turnkey solutions and partners like TFI Resources, a division of People 2.O, to assist you in creating new ways of generating a recurring revenue stream and operating more efficiently as you improve services to meet client needs and engage in-demand talent.

 

If you want to learn more about how the benefits of contract placements (and how you can say YES to more revenue), check out this Infographic. I’d also appreciate your feedback and questions on this topic – feel free to reach me at timb@people20.com or call 713-975-7576.

Are You Ready to Respond to the End of Employees?

Featured Contributor: Amy West, Sr. Business Development Consultant, TFI Resources, a Division of People 2.O

As published to NPA Worldwide’s Blog at http://npaworldwide.com/blog/2017/03/02/ready-respond-end-employees/#.WL8WyvKTPyR

If projections from The Wall Street Journal ring true, recruiters will continue to face an increased demand for contract placements. The WSJ article published February 2, 2017 explains: “Never before have American companies tried so hard to employ so few people. The outsourcing wave that moved apparel-making jobs to China and call-center operations to India is now just as likely to happen inside companies across the U.S. and in almost every industry.”

Are you poised and prepared to take advantage of this growth and opportunity? Don’t cut yourself short! Get your piece of the pie!

Assess Readiness, Communicate Value

“Few companies, workplace consultants, or economists expect the outsourcing trend to reverse,” continues WSJ. “Moving noncore jobs out of a company allows it to devote more time and energy to the things it does best. When an outside firm is in charge of labor, it assumes the day-to-day grind […] and the company worries only about the final product.”

For most companies in the recruiting industry, assuming the “day-to-day grind” is a given, right? Of course you’re expected to take that on, but can you do more? Your prospects and clients are facing a variety of complex challenges every day. How can you help them in new and unexpected ways? Can you offer a solution or present a suggestion? By understanding their challenges and distinguishing yourself and your business as a partner to overcome those obstacles, you’ll be setting yourself up for increased revenue-per-customer, as well as much “stickier” relationships with added value that is a long-term competitive advantage – and a win-win! Tune in. Listen. Uncover the second and third level challenges your prospects and clients are facing, and then consider how you can help meet those needs.

As you stop cutting yourself and your company short, you’ll begin to shift your perspective beyond vendor-mentality and move towards higher value-add relationships. A key thought on this point: don’t take your value for granted! Most importantly, always, always know the “why” behind your client’s use of your services.

For example, in the case of Southwest Airlines, use of contingent workers is not just about meeting the present demand, but a long-term strategic consideration. Greg Muccio, the company’s head of recruiting, relies on a contingent workforce to stay flexible and scalable, saying, “we don’t want to balloon up and then be in a situation where we need to lay people off.” Southwest’s wide use of a contingent workforce also translates to powerful byproduct benefits – it plays an important role in maintaining their brand and core employee morale. This is an important distinction, and belies a vastly greater perception on the part of the client – of the true value added by staffing service providers. How do your clients perceive your firm?

So, know the ‘why’ and probe deep to uncover client challenges, and so reveal opportunities to grow sticky, value-driven relationships. Identify residual benefits of what you do, offer guidance and advice to inform strategy, and clearly communicate your offerings and achievements for client companies into tangible, quantifiable, and specific results.

Eliminate Fear, Dismiss the Myths

You can’t be ready with fear and doubt mixing in your thoughts. As Louis Pasteur said, “Fortune favors the prepared mind.” So being ready for success requires you to have a clear picture of the opportunities ahead and how misconceptions you may have could be an obstacle to your business growth.

The numbers themselves are very clear and compelling. The demand for contingent workers continues to increase. In fact, according to research published by Staffing Industry Analysts (SIA), the percent of U.S. workforce that is contingent was 12% in 2009, 16% in 2012, and 22% in 2016. It’s not slowing down either, as SIA projects that by 2026, 29% of the entire American workforce will consist of contingent workers.

That certainly makes a compelling case for you to blast any myths that could have you missing out on this revenue stream! The truth is that the savviest recruiting firms have already moved beyond only traditional direct-hire recruiting to benefit from the lucrative opportunities found in contract recruiting. If you’re not among them, time for a gut-check. Are you still subscribing to fear and uncertainty that stems from persistent myths about contract recruiting? If you find yourself nodding to any of the following statements, then brace yourself for some myth-busting:

  • Contract recruiting isn’t my business model.
  • I specialize in “niche” recruitment.
  • Contract staffing is an administrative nightmare.
  • My candidates wouldn’t want a contract job.
  • I can earn more money in Direct Hire fees than contract.
  • Contract recruiting is hard!

It may be a tough pill to swallow, but continuing to accept these myths as truth is doing nothing but taking money out of your bank account – less income today and significantly lower business valuations down the road. To counter this, look for ways to learn how you can accommodate contract needs from clients and how you can effectively offer contract services. It’s probably easier than you imagine. You should also determine what kind of profit you can expect by offering contract placements – a strategic industry partner can help you with this (you are welcome to contact me and I’ll be happy to advise if I can).

Think about it … The end of employees could be just the beginning of new revenue for you.

 

 

Amy West, Sr. Business Development Consultant
Phone: 713-600-5202
Email: at awest@tfiresources.com

A Look At 2016 and What to Expect in 2017

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In just a few days 2016 will come to a close, and we’ll have the chance to kick start new resolutions to help improve ourselves personally and professionally.  No matter what we face in the upcoming year, one thing is for sure – being a part of the Recruiting and Staffing Industry is exciting. It takes a special person to wake up every morning determined to connect good people with life changing opportunities. But staying on top of regulations, employment laws and market trends in the workforce is equally as important, and certainly, no easy feat. To prepare ourselves for 2017, let’s recap 2016:

  1. A SIGNIFICANT YEAR FOR NEW HIRES – The job market added nearly 2 million new jobs in the first 11 months of 2016. “When the next inevitable U.S. recession hits, we will surely look back fondly on today’s strong and steady labor market” says Andrew Chamberlain, chief economist at Glassdoor
  2. FINDING THE RIGHT CANDIDATE IS TOUGHER THAN EVER- In April, the U.S. hit an all-time record of 5.8 million unfilled jobs. Thanks in part to the point above, “The shrinking pool of job seekers, translates into fewer available candidates” says Chamberlain, “areas in IT and high-level healthcare lead the pack as the toughest to fill.”
  3. THE WORKFORCE IS OPTING FOR NON-TRADITIONAL CAREER PATHS- 1 in 3 workers became contracted or freelance employees this year. The standard 40-hr, full-time, permanent workforce is decreasing. Jobs that were once considered “stable” are now being replaced by contingent workers who favor the “as needed” basis.

Temp and contract placements increased month-over-month in 2016 with patterns favoring more work-life balance and “be their own boss” mentality.   As the contingent workforce continues to shift in upward growth, the consensus is this: Staffing Agencies are going to thrive right along with it.

This will happen mainly because of the variables it takes to oversee  the process. Companies don’t want to deal with sourcing and managing temporary workers while trying to balance their already demanding responsibilities. However, employers are alarmingly aware of the added benefits temporary staffing brings.  92% of enterprises indicated that non-traditional staffing was a vital facet of their overall corporate strategy.  It’s no surprise this is a big business, totaling $792 billion in 2015 alone.

So, how do you align your business with this increased demand?  For starters, you need to find an expert back office service provider who absorbs the risks and oversees all compliance measures.  Recruiters and staffing firms who already partner with People 2.0 are ahead of the curve. As the recruiting industry grows at a fierce rate,  it’s important to work with a back office partner who handles all the administrative ‘headaches’ which allows you to do what you do best – focus on building your business and brand.

 

Feeling the Holidays!

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For the 5th year in a row, we have partnered with BEAR, a local  Houston organization dedicated to aiding  abused and neglected children currently in CPS . BEAR holds campaigns every holiday season to help provide these children with a somewhat normal Christmas experience. This year People 2.0 sponsored 10 teenagers with their wishlists,  held a toy drive,  and volunteered at the warehouse. Way to get into the spirit team!

More information on BEAR here

Facebook job posting feature poses as threat to Linkedin

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If there’s a pedestal we hold for social networking sites its safe to say that Facebook probably holds that title. And if you don’t think the social networking  giant could possibly get any bigger, think again. Facebook announced this week that it has been experimenting with a feature on their business tab that allows company pages to list their job openings.

A Facebook spokesperson told TechCrunch: “Based on behaviour we’ve seen on Facebook, where many small businesses post about their job openings on their page, we’re running a test for page admins to create job postings and receive applications from candidates.”

This likely has Microsoft owned Linkedin sweating it out a bit since a significant part of their revenue is through their lucrative recruitment business. The new feature from Facebook is expected to pose a challenge to the professional networking site, Reuters reported.

Aside from a jobs tab that will appear on company pages, postings will show up on user’s News Feed. A surefire way to ramp up company page likes.

Plus features like an ‘Apply Now’ button will make it convenient, easy and quick for people to apply to multiple jobs without having to enter repetitious information.

How Facebook plans to monetize the service has not been confirmed at this time. And whether or not people will want to mix business and pleasure is likely a task Facebook has ahead of them.

Linkedin has 467 million members compared to 1.8 billion users on Facebook. If all works out, applicants, employers and recruitment & staffing professionals will have found a way to tap into the largest social network for potential jobs.

No word on when the project plans to launch but we’ll update you as soon as we know more.

September Temp Job Growth Shows Highest 2016 Increase

job-growth-123,200 more temp jobs were had in the  month of September when compared to the previous month according to seasonally adjusted numbers released last Friday  by the U.S. Bureau of Labor Statistics. This increase marks the highest of 2016  with a whopping total of 2,945,100 temp jobs in September. Year-over-year growth increased as well at 1.88% . The unemployment rate rose slightly to 5.0% compared to 4.9% in August which can be attributed to the rising labor force participation. “The acceleration in temporary help jobs growth is an encouraging sign that the economy is regaining its footing in the second half of 2016,” says Andrew Braswell, Senior Research Analyst for Staffing Industry Analysts.

Gig Economy- The New Norm for Millennials

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The freelancer
, the indepreneur, the 9 to 5 working the side gig…whatever you want to call it, the gig economy trend is here and it is now a critical part of the labor market.  So much so that according to a report from Spera, more than 54 million Americans participated in some form of independent work in 2015. That’s more than a third of the entire U.S workforce and an increase of 700,000 workers compared to 2014 .  Some researchers project that nearly half of the working U.S. population will move into the gig economy within the next 5 years.

The domino effect- Contribution to the economy is also skyrocketing, thanks to technologyAccording to the report, in 2014, online freelance marketplaces like Upwork  helped independent workers generate more than 1.1 trillion dollars in total revenue in the United States alone.

Blame the Millennials- 2015 marked the year where they became the largest demographic age group in the workforce. CareerBuilder released a new survey last week that reflects millennials significantly outpacing other age groups for taking on side gigs.  Millennials crave the work life balance and doing contract work allows them to be their own boss and help ends meet.

So how will this effect the staffing industry? Well, as the saying goes, ‘only time will tell’. But one thing is certain: we’ve got your back.  

Companies will heavily rely on the staffing industry to manage compliance, curate talent and not all work relationships meet IRS guidelines for working as an Independent Contractor. Those that don’t, need a company that can support the complexities of being an Employer of Record.   Recruiters that partner with TFI can rest assured that they have a national industry leader in comprehensive back office support that includes offering attractive benefit options for their contract employees. We’ve got the tools to equip our partners to diversify, expand and build their brand so that they can stay competitive in this changing marketplace.